Snap-on Australia 35 years

Innovation is Snap-on’s DNA: global tool brand celebrates 35 successful years in Australia and New Zealand

Sarah Stowe

Snap-on Tools Australia and New Zealand is celebrating an impressive 35 years in business and for Neil Southey it has been one long success story.

The Snap-on brand, a prestigious US firm and a favourite of mechanics worldwide, had already been established for more than 65 years when it landed Down Under.

Back in 1988, 25-year-old Neil Southey jumped at the chance to work with a brand with such a legendary status so he moved from New Zealand to Brisbane (where the head office was set up) to take on the warehouse manager role.

Neil was initially one of only three staff members at the fledgling distribution business.

Snap-on Australia 35 years ago

“There was a general manager, a field manager who looked after sales, and a warehouse manager. We had no stock, just phone lines. It was tremendously exciting, and daunting,” Neil admits.

Today there are 185 franchised trucks operating across Australia and New Zealand, and a whole team of professionals supporting them in head office and in the field.

And the trucks themselves are now larger. Time and space are the biggest challenges for franchisees, and the 8-metre trucks visiting mechanics at their place of work now showcase considerably more product than their 5-metre predecessors. 

Neil has watched the Snap-on brand flourish in Australia and New Zealand over the past three and half decades and has adapted and grown with the business himself.

After a couple of years, the business operations moved to Sydney; however Neil stayed in the Sunshine State – and bought into the dream. He purchased his own franchise.

Neil ran his franchise business for three years before one of his customers took over the franchise and he returned to a corporate role assisting new franchisees.

Growing the business

“There were probably just 30 franchises in the system at the time. I had started up franchises in a few states but the brand was still very unknown.

“The corporation was prepared to invest in innovation, and that made all the difference,” he says.

He has taken on a number of different roles at Snap-on including store manager and franchise developer. Neil spent 10 years as a field manager in Queensland, building up the 10-strong Gold coast franchisee network to 18.

“It was very satisfying to see fresh-faced young business-minded people succeed,” he says.

Today, he is the business manager for Queensland and New Zealand, responsible for 64 franchisees and company stores, which is just over one third of the Australian and New Zealand network.

“New Zealand is a huge market. It has a similar population size to Queensland yet has only 14 franchisees compared to 49 in Queensland.”

A compelling franchise offer

The 4,500 franchisees worldwide are testament to the brand’s success, and combined with Snap-on’s impressive heritage, present a compelling franchise offer, says Neil.

One way the business has grown substantially is through multi-unit franchising, which was introduced about 15 years ago.

“It is no longer just a one man and a van model. Now multi-site franchisees have built up business for themselves. My job is to recognise the entrepreneurs, identifying those who want to grow.”

Some franchisees have built businesses up to four stores, a warehouse, and staff.

There has been an increase in tenure too, which has more than doubled from seven years to 15 or 20 for multi-site franchisees.

“What’s allowed us to do that has been innovation. We have adapted to introduce products and programs that lead to increased revenue,” says Neil.

Specialist support on hand

“Now I have individuals in field support who offer dedicated services. There is one on tool storage units, one for diagnostics, one for equipment. 

“Switched on franchisees book a specialist to come out on the road with them over a number of days and sell toolboxes or explain diagnostics. We have never had as much support as we do now,” he says. 

The shift in technology has significantly impacted the business.

“In my day it was all manual. Now there is greater transparency but we haven’t lost sight of our brand DNA. All the technology is about enhancing the franchisee channel,” says Neil.

Snap-on is putting time into supporting franchisees. We provide a month’s on-the-road training; there is a really good infrastructure within the business. 

“It’s all about focusing on trust. We invest time in, developing a genuine connection with, our franchisees through recruitment, training, and onboarding, and the constant support we provide. 

“For us and our franchisees it’s personal and that is why Snap-on has become successful over the last 35 years and continues to be heading into the future.”